Effect Of Automation System Outcomes On Revenue Collection Of Nakuru County Government, Kenya

Abstract

The collection of revenue at both national and county level governments has been a big challenge and remains a major obstacle in national government and county governments in achieving their revenue collection targets and economic goals. The use of automation as means of revenue collection has been globally recognized as the most efficient, effective, economical and transparent means of revenue collection. The aim of the study was to examine the effect of automation systems outcomes on revenue collection of Nakuru County Government, Kenya. The specific objectives of the study were to examine outcomes of automation systems such efficiency, convenience and transparency and its effect on revenue collection. The study adopted a survey research design, which covered the sub – counties of Nakuru county government, namely Nakuru East, Nakuru West, Njoro, Molo, Kurusoi North and South, Rongai, Subukia, Bahati, Gilgil and Naivasha. Targeted population for the study was 132 employees of the county government of Nakuru working in revenue and finance/accounts departments of the listed sub –counties of Nakuru County Government. Purposive sampling, proportionate/ stratified sampling and simple random sampling. Nassiuma’s 2008 formula was used to determine a representative sample size of 69 respondents for the study. The study used self-administered semi-structured questionnaires to collect the data. A pilot study was conducted in Uasin Gishu County in Eldoret, before main study was done. Cronbach alpha coefficient was used to test the instrument’s reliability. Content validity was determined through expert opinion the supervisors. Collected data was transformed/analyzed with the assistance of the Statistical Package for Social Science version 23 (SPSS). Descriptive statistics included mean, frequency, percentage and standard deviations while inferential statistics mainly Pearson’s moment of correlation andmultiple regression analysis. The results of the analysis were presented in form of tables. The study findings indicated that all the study variables automation system transparency (β = 0.307; p =0.005), automation system Efficiency (β = 0.167; p =0.043) and automation system convenience (β = 0.509; p =0.000) are predictor variables for revenue collection. The study also concluded that transparency, Efficiency and convenience were effective factors that enhance county revenue collection, thus automation of revenue collection contributed to reaching the goal of good (financial) governance, accountability and transparency of revenue collection in Nakuru County. Therefore it is recommended that county governments should ensure that revenue automation as an element of revenue collection is well managed, implement engagement processes for open data standards activity and crowd source priority areas,ICT department should ensure that there is effective project coordination and change management and the need to have a clear Vision and strategy to guide the implementation and smooth running of revenue collection process. Lastly, the study suggested further research to be done on effective revenue collection automation on revenue generation.